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The Foggy Futures Weather Network offers an annual almanac for sale each year with information about predicted weather patterns, severe storm safety tips, and a tracking chart. The finished product sells for $35, with a variable cost per unit of $21. The company has operating costs of $1,050,000. Using 100,000 units as a base, what is the degree of operating leverage?


A) 6.2
B) 5.7
C) 7.9
D) 4.0

E) A) and B)
F) None of the above

Correct Answer

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